• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 29 mins Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 7 hours America's pandemic dead deserve accountability after Birx disclosure
  • 2 days Putin blocks Ukraine access to Black Sea after Joe blinks
  • 1 hour U.S. Presidential Elections Status - Electoral Votes
  • 3 days Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 1 day Fukushima
  • 2 days So. Who's for Universal Basic Income?
  • 3 days Biden about to face first real test. Russia building up military on Ukraine border.
Why Natural Gas Won’t Be Replaced Anytime Soon

Why Natural Gas Won’t Be Replaced Anytime Soon

A carbon-tracker report found that…

Saudi Surprise Cut Continues To Lift Oil Prices

Oil prices remained elevated and were still on the rise on Thursday, hitting an 11-month high, as the effects of Saudi Arabia’s surprise announcement about an additional million barrels of crude oil production cuts still has enough juice to withstand civil unrest in the United States and the global pandemic.

At 4:11 p.m. EST, the WTI benchmark was trading up 0.61% on the day at $50.94. The last time WTI traded above $50 per barrel was February. One week ago, the WTI benchmark closed at $48.52.

The Brent crude benchmark is now trading at $54.50, up 0.37% on the day. February was the last time the Brent benchmark sat above $54.

The oil market seems to be focusing more on what Saudi Arabia can do to rebalance oil’s supply and demand than on any political instability brewing in the United States. The oil markets also seem to be discounting the serious impact that new waves of lockdowns will have on the overall demand picture.

While oil prices did slip briefly on Wednesday as a group of President Trump supports stormed into the Capitol, it was unable to tamp down effects of Saudi Arabia’s gift that keeps on giving. The market is for now satiated.

Still, oil prices are multiple dollars per barrel lower than they were in the summer of 2019, and Brent is still trading $20 per barrel below what it was trading at in the summer of 2018 as the pandemic has stripped millions of barrels per day off of the demand side.

Not even swing producer Saudi Arabia has enough juice to offset that demand destruction. 

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News